By on January 4, 2010

Please do not attempt to perform a Google Image search for "Asian Glory" (courtesy:novinite.com)

As soon as the vessel embarks, all risks related to the vessel are the responsibility of the distributor. All payments for the cars have been made, while the cars are also insured.

From a Hyundai statement to Bloomberg on the fate of 2,388 Hyundai and Kia vehicles aboard the Asian Glory, which was hijacked by Somali pirates en route to the Middle East.

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17 Comments on “Quote Of The Day: The Teflon Automaker Edition...”


  • avatar
    obbop

    “Please do not attempt to perform a Google Image search for “Asian Glory” (courtesy:novinite.com)”
    Even more so for “Asian glory hole”

  • avatar
    morbo

    If traveling to the MidEast and the Somali pirates hit it, geography indiactes that  these were ‘Bama built Sonatas instead of Seoul built Genesis’s (whats the plural of Genesis, Genesii, Genseseseses?).
     
    And they say America doesn’t build anything anymore.

    • 0 avatar
      no_slushbox


      I would guess that anything from the US would be dropped off at a Mediterainian port and gone by land instead of going through the Suez Canal, especially given the pirate situation, to get to the Middle East.  Looking at a map it could have been headed from Korea to Yemen, western Saudi Arabia, Israel or Jordan.

    • 0 avatar
      charly

      They left from Ulsan. That is in Korea. So no American assembled cars where taken hostage.

  • avatar
    pgcooldad

    I would hardly call them built in America.
    It’s more like assembled in America.

  • avatar
    Greg Locock

    Not too sure about the WTF tags, it is SOP to be paid for the car as it leaves the factory gate, at least at two of the companies I have worked for.

    • 0 avatar
      MadHungarian

      Agreed.  On the ground, new cars generally make their way to dealers first by train, then by truck.  Who bears the risk if either the train or the truck meet with some misfortune?

    • 0 avatar
      MSil34

      Regardless if the cars are sent by train or by boat, the contract with the shipping company determines who is responsible for the car from the point it leaves the factory to when it arrives at its destination.  And as Greg Locock says, it’s standard for the shipping company to take responsibility for the car when it leaves the factory, so it’s most likely the shipping company.  Now the shipping company probably contracts out parts of the journey, such as the trucking portion, to sub-contractors.  These contracts also stipulate who is responsible, so it depends on shipping company and the sub-contractors SOP.

    • 0 avatar
      holydonut

      Yeah, most automakers book revenue when the risk of loss / ownership is passed from them to their buyers.  Definitely, for a USA assembled car for sale in the USA, then the automakers gets to book revenue the moment the car exists the factory as an assembled car.
       
      For international vehicle networks there’s usually an intermediate distribution network that owns the car between the time it leaves the factory to the time it is actually ordered by a retail outlet for sale in the other country.  This is often a regulatory requirement, or an issue where the tax structure requires the use of the distributor rather than factory to showroom direct transactions.  Hyundai probably has a relationship as such they have no risk of loss for the vehicle as it embarks to the distributor.  It’s just business – and everyone involved knew the risks when they entered into their contracts.  Those distributors make a load of money acting as wholesalers, and that’s why they buy insurance.
       
      The WTF has to do with the modern day pirates; Hyundai isn’t being slippery here at all.

    • 0 avatar
      charly

      Distributor is probably owned by Hyundai so it cost them money  (depending on insurance)

  • avatar
    Facebook User

    Man these guys need some class.  Hijacking a Hyundai/Kia?  I would have gone for at least a Mazda/Honda/Toy Yoda instead.

  • avatar
    no_slushbox

    Aye matey, me thinks ya won’t be plundering any swashbucklin’ rear wheel drive coupes from those three scurvy dogs.

  • avatar
    Dimwit

    The only company on the hook at the moment is the insurance companies.

    Where’s George Peppard when you need him?

  • avatar
    fincar1

    For interesting info on marine (and other) transportation disasters, check out the Gallery of Transportation Loss.
    http://www.cargolaw.com/gallery.html
    You can tell right away that the site was assembled by lawyers rather than web experts, but there’s a lot of fascinating info and great photographs there.

  • avatar
    gslippy

    If the pirates receive a ransom but the ship sinks, is this another failed Cash For Clunkers deal?

    As for the headline, Teflon Automaker is an exquisite choice of words.

  • avatar
    Sinistermisterman

    FYI the owners/managers of the ship are a company called Zodiac Maritime. 
    http://www.zodiac-maritime.com
    This car carrier is their second ship in the space of a week to be captured by pirates.
    Also, all shipowners take on the responsibility for the cargo the moment it gets on board. To this effect all shipowners are insured up to the hilt for pretty much every possible problem.
    Remember that ship load of Mazda’s that ended up spending weeks on their sides? Eventually it would have been the ship owners insurers that coughed up.
    Oh and just because I’m a boring factoid type person, the ship was actually built by Hyundai in 1994… *yawn*.


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